Canadian dollar falls as equity futures turn lower

Mon Apr 6, 2009 8:15am EDT
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 TORONTO, April 6 (Reuters) - The Canadian currency was
driven lower versus the U.S. dollar on Monday morning due
largely to a turnaround in equity futures, which now pointed to
a lower open and dampened investor appetite for risk.
 U.S. equity futures now suggest a lower open after a broker
downgrade of tech bellwether Cisco CSCO.O. [ID:nN06382017]
 At 8:05 a.m. (1205 GMT), the Canadian unit was at C$1.2333
to the U.S. dollar, or 81.08 U.S. cents, down from an overnight
high of C$1.2225 to the U.S. dollar, or 81.80 U.S. cents.
 The sudden drop in Canada's dollar came even as the price
of oil, one of the nation's key exports whose price often
dictates the currency's direction, rose towards $54 a barrel.
 "Basically the theme is as usual, the market is going to
follow what happens in equity markets and use that to determine
the price direction in FX markets," said George Davis, chief
technical strategist at RBC Capital Markets.
 "So with equity futures shifting from positive territory to
negative territory that has helped push the (U.S.) dollar a bit
higher here to start."
 The Canadian dollar was only slightly off Friday's session
close of C$1.2304 to the U.S. dollar, or 81.27 U.S. cents.
 (Reporting by Frank Pingue, Editing by Chizu Nomiyama)